Credit Report

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What is a credit report?

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A credit report is a detailed report of an individual's credit history, including information about credit accounts, payment history, and outstanding debts.

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Why do lenders check credit reports?

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Lenders check credit reports to assess the creditworthiness of a borrower, which helps them determine the risk of lending money.

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What can negatively impact your credit score?

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Factors such as late payments, high credit utilization, numerous credit applications in a short period, and defaults can negatively impact your credit score.

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What is considered a positive credit history?

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A positive credit history includes timely payments, low credit utilization, and a mix of credit types.

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What information is typically included in a credit report?

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A credit report typically includes personal information, credit accounts, payment history, credit inquiries, and public records.

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What information is NOT included in a credit report?

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Information such as debit card balances, medical information, and income details are not included in a credit report.

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How can you improve your credit score?

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You can improve your credit score by making payments on time, reducing debt, avoiding new credit applications, and regularly checking your credit report for errors.

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What is a credit inquiry?

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A credit inquiry occurs when a lender checks your credit report to evaluate your creditworthiness, which can be a hard or soft inquiry.

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What is the difference between a hard inquiry and a soft inquiry?

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A hard inquiry occurs when a lender checks your credit for lending purposes and can affect your credit score, while a soft inquiry does not affect your score and is often used for pre-approval checks.

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What is credit utilization?

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Credit utilization is the ratio of your current credit card balances to your credit limits, and it is a key factor in determining your credit score.